Vasupal, founder of Stayzilla that announced the halt of its operations last month, was taken into custody by the Chennai police following charges of defraud by an advertising firmET Bureau | March 21, 2017, 08:15 IST

A group of prominent entrepreneurs and investors from across India, which has thrown its weight behind the recently arrested Stayzilla CEO Yogendra Vasupal, has notched up its efforts to seek his release from police custody by sending an open letter to the Union home minister seeking his intervention in the matter.

They have warned of the negative implications the case will have on the `Startup India' movement and on India's image as a startup hub globally.

Vasupal, founder of Stayzilla that announced the halt of its operations last month, was taken into custody by the Chennai police following charges of defraud by an advertising firm.

Over 80 industry members, including Paytm's Vijay Shekhar Sharma, Ola's Bhavish Aggarwal, and investors such as Sharad Sharma and Mohandas Pai, who formed an informal group called `Help `Yogi', have put up the letter on its website on Monday, stating that the episode has "had global repercussions and besmirched India's reputation in Silicon Valley and elsewhere."

The letter has been mailed to Union home minister Rajnath Singh, group members said.

"Although we do not wish to prejudge the matter, the Stayzilla case and its locked-up founder underscore the hardships of being an entrepreneur in India. If ever there's a right to be an entrepreneur, that's clearly been violated. Period," the letter stated.